The state government is likely to wind up the Kerala GAIL Gas Ltd (KGGL), floated towards the end of 2011 to execute ‘city gas’ projects in different parts of the state.
The move comes following the company’s failure to secure contracts for city gas network development project anywhere in the state. According to latest reports, the Indian Oil-Adani Gas Private Ltd (IOAGPL) has won the contracts for most of the projects announced so far.
KGGL is a joint venture between GAIL and Kerala State Industrial Development Corporation (KSIDC) that aims at accelerating the delivery of compressed natural gas (CNG) for the transport sector and piped natural gas (PNG) for domestic consumers and hotels.
The company had also planned extraction of natural gas. The authorized share capital of KGGL is Rs 30 crore and its paid up capital is Rs 23.86 crore.
“In fact, the director boards of both GAIL and KSIDC had given the go-ahead for the dissolution of the company, after it failed to get the city gas project in Kochi in 2015. Read More